Samantha Henderson's "The Red Bride" is a darkly wonderful story. It reveals that grim undercurrent of the story slowly, beginning in what seems a simple bedtime story told by an enslaved alien nurse to her human ward. The setup allows for some bits about how stories translate from one culture and language (and species) to another, and just in general it feels very skillfully handled. Beautiful story.
I also just discovered that Subterranean Online published a Peter Beagle story set in the same locale as his Innkeeper's Song and Giant Bones books, "Return." I haven't had a chance to read it all yet, and to tell the truth, I remember little from the book, apart from the fact that I really liked it on many levels when I read it some 10 years ago (I think...). Well, that's not quite true--I remember a lot of little snippets, brief scenes, images, but the underlying story that ties them together is largely forgotten. Anyway, that's next on my list to read, and I'll recommend it without even having read it.